Thailand's Video Codec Market to Hit $7.9B by 2031 on 5G, OTT Growth
Thailand's next-generation video codec market is projected to reach $7.9 billion by 2031, driven by increasing mobile video consumption, 5G expansion, and OTT adoption. HEVC and AV1 are identified as key codecs gaining popularity for their efficiency in delivering high-quality video at lower bitrates, influencing codec choices for streaming professionals. Challenges include infrastructure compatibility, high implementation costs, and licensing issues, but government initiatives and growing demand for high-definition content continue to fuel market growth.
Key Takeaways
- The market is forecast to grow at a CAGR of 22.1% from 2025 to 2031, reaching $7.9 billion.
- HEVC is projected to remain the largest codec segment due to bitrate efficiency, despite processing complexity.
- Mobile phones are expected to drive the highest growth within the application category.
- Challenges include infrastructure compatibility, high implementation costs, and licensing issues.
- Government initiatives for digital infrastructure and smart cities are significant market drivers.
Why It Matters
The rapid expansion of Thailand's video codec market signals increased demand for efficient content delivery infrastructure. Streaming services and other video-centric businesses operating in the region must prioritize codec adoption strategies to manage bandwidth costs and enhance user experience. The coming years will reveal which codecs gain dominant market share as 5G networks and local OTT platforms mature across Southeast Asia.
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